Some thoughts from an amateur:
Seeing the market cap of the stock has reduced from $5.00 to $3.50 over the last 3 months (-30%), wouldn't the large passive ETFs then also need to reweight and adjust holdings accordingly. They would do this monthly or quarterly.
Haven't been through the specific numbers but if say ~15% of the stock is held buy these funds rebalancing, that would bring out 30% x 15% = 5% of shares to be sold. So that's a big chunk of the short interest that can be unwound without driving prices up.
It would be better if the passive ETF's added back in the short position % when determining how to rebalance their portfolios to stop shorters taking advantage of them. Or maybe they already do... I don't know.
Some thoughts from an amateur:Seeing the market cap of the stock...
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$3.07 |
Change
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Mkt cap ! $9.239B | |||
| Open | High | Low | Value | Volume |
| $3.19 | $3.20 | $3.07 | $96.53M | 30.85M |
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| No. | Vol. | Price($) |
|---|---|---|
| 41 | 815921 | $3.06 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $3.08 | 309816 | 3 |
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